BUENOS AIRES, Dec 10 (Reuters) – Higher beef prices pushed up the pace of monthly inflation in Argentina in November but the yearly rate likely dropped to a new seven-year low, a Reuters poll of economists showed.
The monthly pickup in consumer price rises from October was seen as only marginal thanks to the impact of an austerity drive President Javier Milei seeks to bolster with other structural reforms.
The consumer price index inched up to 2.4% in November from 2.3% in October, according to the median estimate of 22 economists polled over December 3-9. The INDEC stats agency will release the data on Thursday.
Annual inflation was seen slowing to 30.9% in November from 31.3% in October, which would be the 19th drop in a row from a record 289.4% in April 2024.
“Beef prices had already been accelerating since October and in November they increased even more,” C&T Asesores Economicos analysts wrote in a report.
Bovine meat consumption remains omnipresent despite some decline in recent years, with popular “bife” steaks, “milanesa” schnitzels and “asado” barbecue grills a common sight at homes and restaurants.
Last month’s rise in the headline CPI was moderated by special online discounts on consumer goods prices, C&T added.
The forecast 30.9% annual rate in November would be the lowest since 29.5% in June 2018, resulting from a tight fiscal policy.
An easing of Argentina’s cost-of-living crisis was the main reason why a majority voted for Milei’s ruling party in a legislative election in October amid political acrimony and extreme market volatility.
Milei’s priority for the coming weeks is an overhaul of Argentina’s labor regulations to reduce headcount costs by making it easier for companies to hire and dismiss workers.
The proposed changes are part of a list of requirements from the International Monetary Fund that aim to make Argentina’s economy more productive so it can repay its large debt to the lender.
(Reporting and polling by Hernan Nessi and Gabriel Burin; Editing by Kirsten Donovan)
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